Swapalease, an online peer-to-peer lease transfer company, reported a 70.9% lease approval rate in October, a slight increase from September’s 69.8% rate.
The company said it wasn’t surprised by the modest month-over-month increase, saying consumer credit rose at a seasonally adjusted rate of just 3.3% in September, down from the 7% the month before. And Swapalease noted that year-over-year approvals were significantly higher than the 55.6% approvals reported in October 2017.
The company said it expects to see continued high levels of credit approvals. “One of the biggest contributing factors is that all automotive financing has gotten softer in terms of value for the consumer,” Scot Hall, Swapalease, executive vice president, told Auto Finance News. “Leases aren’t as attractive as they were a year or two ago. Part of that has to do with interest rates rising. People are coming to us because they’re taking over leases that are based on better deals that were available one to two years ago.”
Swapalease pairs consumers looking to get out of leases with those who want to take them over. Clients are sent back to the financiers who originated the lease to finalize the transfer. Hall estimates that lessees using the platform are saving an average of $10,000 in payments by transferring their lease. The company transfers around 1,000 leases a month, with monthly payments averaging $510 a month.
“People can come to us and get what is essentially a new vehicle and yesterday’s pricing, which in today’s environment is more attractive,” said Hall.
